USD to a 3 year low today versus a basket of currencies due to the Fed’s intention to keep interest rates near 0.Also weaker than expected US jobs and economic data underscored the bearish sentiment. The Federal Reserve said yesterday that it would complete its $600 billion bond-buying program in June, but Chairman Ben Bernanke signaled no rush to tighten monetary policy. Official data today showed that the US economy grew less than expected in the first quarter and initial weekly jobless claims rose more than forecast. EUR/USD opened the session trading at 1.4815 and moved as high as 1.4851. It is currently trading at 1.4818.
GBP held near a 17-month high versus the USD today, keeping gains as investors placed more bearish bets on the USD after the Fed signaled it was in no hurry to reverse policy. British consumer confidence data fell again, however, GBP/USD held support and is heading higher again. USD bearishness is consensual, but remorseless.
CAD lost some gains versus the USD today. The currency was boosted during the previous session by the USD’s broad based slide following dovish comments by the Fed and underwhelming economic data. USD/CAD opened the session at 0.9480 and it is currently trading around 0.9509. Analysts say that the CAD has underperformed other commodity currencies, but is still expected it to remain firm versus the USD.
AUD moved to a new 29 year high today (during the previous session) as a dovish Fed undermined its US counterpart. The Australian currency moved higher from option barriers at 1.09 to hit a previous session high of 1.0947, gaining nearly a full cent from the New York close. During the current session, AUD/USD is trading at around 1.0924. AUD has the $1.1 objective well within its sights, underpinned by strong buying from Asian central banks keen to diversify their flows, according to traders. The Aussie is also seen as a proxy for illiquid Asian currencies.
Silver moved around a previous all time high today. Also the precious metal (gold), rose to another record, as a falling USD and signs that the Fed would maintain a loose monetary policy boosted precious metals appeal as a hedge versus inflation and economic insecurity. Silver opened the session at 48.37 and moved as high as 49.48 while gold opened the session at 1532.0 and jumped to 1538.1.